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[MoreMore Insights] Property Buying Negotiation Tips



Buying a house is different from buying general goods. The price of the house can be negotiated and flexible. Buyers can conduct their own research, or cooperate with real estate professionals to try their best to buy the house at the most reasonable price.



1 Understand Your Borrowing Capacity


Before negotiating to buy a new house, knowing your financial bottom line can clear your mind a lot. By taking a realistic look at your financial situation, you will be able to know how much room you need to maneuver if you are in the seller's market. More realistically, your overall financial situation also helps determine your mortgage interest rate. The safest way is to get the bank loan pre-approval. If the bidding exceeds your bottom line, it is wise to quit in time and look for updated goals.


2 Understand the Market


Preparation in advance is an important part of successful negotiation, which includes two aspects: knowing yourself and knowing the other. On the one hand, it is necessary to find out the regional market where the target property is located; On the other hand, you should clearly know your ability to pay or the bottom line of the negotiation. At the same time, you should understand the gap between the property value and the price. Don't let feelings prevail. Understand the characteristics, price and transaction cycle of the property being sold in the market, and also investigate the price of the property being sold around the region. You can visit www.realstate.com.au or www.domain.com.au to find the sales history, regional overview and other properties for sale in a specific area. Pay special attention to the listing prices of similar properties in the same area, which will enhance your bargaining chips.


3 Be Sure To Get An Inspection


The inspection results may be the key to negotiating the final price of the house. The inspector will walk around the home to assess whether there are any problems in the home, such as foundation cracks, AC system problems, etc. The inspector will then give you a copy of the report. If the house inspection finds any problems, you can use these defects in the negotiation to ask the seller to make concessions to obtain a lower price. Or you can ask to fix these defects in the current house without raising the quotation. It should be noted that inspection and evaluation are not the same things. Your appraiser's knowledge will give you a rough estimate, and will not specifically point out where there are problems in the house that you must solve.


4 Ask More Questions to Collect Information


Know who set the listing price. If the price is set by the seller, then it is likely that the real estate agent will also think that the price is too high, so it will encourage you to make a bold counter-offer. Try to understand why the seller sells the house. The more you know about the seller, the more effective the negotiation will be. For example, if your seller moves because he has bought a new house, you can get a better offer by asking for a discount. Because the seller may want to move into a new home as soon as possible. Or you can directly ask how long the property has been listed in the market. If the time is long, it may indicate that there is something wrong with the house itself. If it is really the quality problem of the house, you can choose to quit, which can avoid wasting time and increase your negotiation advantage.



5 Set Period for Quotation


It is best to set a deadline when making a quotation, so that the other party can not only feel your sincerity, but also urge the other party to make a decision as soon as possible. If the real estate agent does not respond in time, it is likely that other buyers have offered higher prices. You need to adjust your strategy in time, and decide whether to participate in the bidding or exit to look for other opportunities.


6 Price is not the Only Thing That Can be Negotiated



Although the price of the house will be your greatest concern during the negotiation, you negotiate other conditions, such as the proportion of the deposit you need to pay, the length of settlement, whether the house contains furniture, etc.



7 Increase Quotation by a Small Margin


Your initial offer may not be accepted, or you may be told that another buyer has made a better offer. In either case, just add a small amount to your next quote. Unless there is a sense of competitive urgency, it is wise to avoid jumping straight to the limit.


8 Don’t Be Afraid To Walk Away


In some situations, you will encounter a seller who is not willing to budge on the house price. They may have many offers, or they may be very attached to the home. In this case, you may pay more money or need more loans. Attend multiple showings. Ask your real estate agent to arrange different house watching activities for you. Try not to be too fond of a particular house. This can help you negotiate more effectively and stay within your budget.



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